Short term loans can be either secured or unsecured. While one gets a comparatively lower rate of interest with a secured loan, short term unsecured business loans don’t require you to put up any collateral as security.
Fast short term business loans are what every business requires and here are 7 amazing benefits of a short term loan for your small business.
1. Quick Application Process
Digital lenders like Indifi are offering short term loans in India with a quick and easy application process, thereby allowing small business owners to apply for a loan online in very little time. Unlike traditional lenders who take ample amount of time putting paperwork and doing meetings to analyse the capital which the business requires, lenders like Indifi take as little as a few minutes to complete the loan application that too online.
2. Obtained faster than traditional lenders
Short term loans are reflected in your bank account very quickly, sometimes taking only a few hours to get approved. The funds are deposited in the nominated bank account and the business owner can use it on his disposal. This is in contrast to traditional lenders who take weeks or even months to process loan applications. This can be very stressful for the small business owners stuck in a financial crunch who need cash in hand at the earliest.
Flexibility and short term business loans go hand in hand. Apart from providing a flexible business funding option, these loans can be customised to suit the needs of the borrower. There is the flexibility of repayment terms, varying interest rates and repayment options. Digital lenders like Indifi provides easy loans with the flexibility of repayment through small monthly instalments.
4. More cost-effective in the long-run
Short term business loans might have a little higher interest rate than other financial funding options, but their shorter repayment schedule can prove to be a potentially cost-effective option in the long run. The long term loans may initially seem to have a lower interest rate, but their long repayment period adds up interest in a way wherein the borrower ends up paying significantly higher than the total amount repaid for a shorter-term business loan.
5. Absorb the impact of seasonal changes
Every business sees ups and downs. Small business owners have to face turbulence from more ways than one in terms of seasonal changes. These might have a potentially dramatic effect on your earnings and in extreme might even sink your business. In these hard situations, short term loans come as a saviour by providing a decent cash inflow. Digital lenders like Indifi provide loans up to 50 lacs depending upon your need to counter the financial crunch in business.
6. Help you manage business capital
Each and every business requires capital to back it. It makes the foundation stronger and the business more reliable and powerful. Small businesses usually lack ready money access and to help them, short term loans provide the solution. Using the injection of cash provided by the short term business loans, one can expand operations, recruit more staff, inventory, marketing etc.
7. Offer a safety net in times of emergency
As mentioned earlier, seasonal changes can lead to slower business growth and consequently less income. In terms of unforeseen business emergency, short term loans are boon as they prevent the business from sinking by providing adequate cash. These loans are provided in a jiffy without much delay in documentation and processing work and thereby providing the much needed financial safety. This offers a safety net for your hard earned business.
It is imperative for every small business owner to apply for a short term loan which comes loaded with several benefits and decent cash inflow for your business requirements.